Understanding Domain Flipping

Since I started this blog back in October of 2007 I have always found a lot of confusion around the term “domain flipping”. I think at least once a year I will re-visit this topic and give people a detailed look at what the Domain Flipping process involves.

I have written several posts about this in the past – feel free to check these-out as well :

The Domain Flipping Process Explained

Domain Flipping Defined

The many definitions of Domain Flipping

So what is Domain Flipping?

I oftentimes compare Domain Flipping to House Flipping as the two concepts are very similar just taking place in different worlds – the physical vs. the digital. Many Domainers seem to think that Domain Flipping is the process of buying a domain name and selling it as quickly as possible for a profit. This is nothing like House Flipping. Could you imagine if a House Flipper bought a house in need of repair – did nothing to it, and then tried to sell it for a profit – Good Luck! Instead a House Flipper researches the neighborhood their target home is in, determine what the average selling price of similar homes is. The House Flipper then takes a variable amount of time – could be one month, could be one year – and completely transforms the home into a masterpiece. It is through this process – the upgrading of the house both inside and out and dramatically increases the price of the home and give the House Flipper their profit.

The exact same is true of Domain Flipping. When you flip a domain you do your research and determine the popularity of your keywords, analyze similar sales, understand the market you are in and potential growth factors. Once you find the right domain you then begin the upgrade process by putting a high-quality, content-driven website on the domain with information your target audience is looking for. You turn a domain name that was getting 1-2 visitors a day into an investment that is making $100/month and receiving thousands of visitors. This is Domain Flipping and it takes a different amount of time for each domain name.

Our average time for a flip is six months. This is the amount of time we feel it takes for most of our domains to begin generating consistent monthly revenue and strong organic traffic.

When thinking of Domain Flipping it is essential that people understand that you need to take time, do your research, and develop a destination on your domain name that will bring with it traffic and revenue. Like I said earlier, a House Flipper wouldn’t buy a decrepit house and try to sell it without completely transforming the house inside and out so that it is attractive to buyers. A Domain Flipper needs to be a jack of all trades, or have a good team that can provide the skills necessary to grow your investment. When finished your domain should be a brand-new entity in the domaining world, and an investment that will pay itself back better than any traditional investor could dream of!

Have a great weekend everyone, and as always – Happy Flipping!

Want to learn more about how I Flip Domains? Read my Book

Please feel free to re-print this article on your site – simply provide credit and a link back to my blog.

{ 4 comments… add one }

  • Domain Superstar February 28, 2009, 9:21 pm

    What’s your average ROI on a flipped domain?

    Reply
  • Josh P March 2, 2009, 4:19 am

    I’ll start developing my domains before flipping them once I witness comprehensive statistics that doing so increases the frequency and dollar-amount of flips. I have yet to be presented which such statistics.

    Your comparison between domain name and real estate flipping is flawed. When you purchase a house, renovate it, and hit the streets selling it, prospective buyers know they will enjoy both the physical and aesthetic comforts resulting from your home makeover once they move in, and this understanding increases the amounts buyers are willing to pay. By contrast:, web-prowlers who stumble across your developed domain name and take interest know that, with 99% likelihood, they’re not purchasing the website along with it. Hours spent developing plunge down the drainpipe. Here, your customer has his/own vision on transforming your domain’s keywords into a website that bolsters his/her business (or, more often, on using it as a redirect).

    Now, I understood you could somewhat artificially raise the price of any object (domains included) by slapping a nice facade on it, but until domainers present the world with hard statistics to demonstrate this flow genuinely extends to domain names, you’ll find no flippers diving into the development pool anytime soon.

    Reply
  • Jerrod Young November 26, 2010, 9:04 pm

    I noticed this thread is a little old. Are you still successful with the methods you’ve listed?

    Reply
    • Morgan November 29, 2010, 1:46 pm

      Thanks for the comment @Jerrod – make sure to check-out the third edition of my book about Domain Flipping coming-out this week!

      Reply

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